The property market in the UAE started the year with robust growth in all areas in Q1.

According to CBRE Group's most recent report on the UAE Residential Market for Q1 2024, Dubai witnessed a surge in total transaction volumes, reaching 35,310, reflecting a 20.5% increase compared to the previous year and setting a new record high for the first quarter.

“The strong levels of activity and high absorption levels, which have reduced available supply, will continue to support price growth in both Abu Dhabi and Dubai over the remainder of the year,” said Taimur Khan, head of research at CBRE.

CBRE's review of the UAE market indicates a notable uptick in property transaction volumes in Abu Dhabi, with a 22.6% rise to 2,795.

This growth is credited to an 18.1% increase in off-plan sales and a 34.5% surge in secondary market sales.

Throughout Q1, average apartment prices in Abu Dhabi saw a 4.3% increase, while villa prices rose by 2.3%. Additionally, there was a respective 4.5% and 1.1% uptick in average apartment and villa rents during this period.

In addition, Abu Dhabi's rental market witnessed 46,130 residential rental contracts in Q1, marking a yearly decrease of 10.9%. This decline is attributed to a 15.5% drop in rental contract renewals and a 2.4% decrease in new rental registrations, as indicated in the report.

“In terms of rental growth, we expect that rental rates in Abu Dhabi will continue to rise, with prime areas set to outperform the market,” Khan added.

Furthermore, in Dubai, total transaction volumes hit an all-time high of 35,310 in Q1. Off-plan transactions experienced a notable increase of 23.9%, whereas secondary market transactions saw a rise of 15.2%.

In March alone, Dubai achieved a new record high in regard to transaction volumes, with an increase of 13.2%. Throughout this period, both off-plan sales and secondary market sales experienced a significant rise of 20.2%, while secondary market sales rose by 2.2%.

Additionally, price growth in the Dubai real estate market maintained its momentum during Q1, with average prices rising by 20.7%. Specifically, average apartment prices saw a 20.4% increase, while villa prices recorded a rise of 22.1%.